Are Credit Monitoring Companies Worth It?

With so many credit monitoring companies in operation these days, most of these are reputable, while some agencies are nothing but pure scams, who usually charge excessive fees. If you’re still undecided about which credit report monitoring company to sign-up with, here are a few pros and cons of signing-up with credit monitoring services.

Credit Monitoring Companies Pros

1. A credit report monitoring service makes a person’s life so much easier. Instead of personally filing for a credit report in the agency’s office, you simply need to go online to quickly pull them up.

A credit report is generally presented in an easy-to-understand format, which won’t require you to hire the services of a professional financial analyst to sort through the clutter.

2. Credit monitoring companies quickly tell you of any activity in your account. You’ll also be able to immediately notice if ever there are any inconsistencies, inaccuracies or flaws within your report.

By immediately finding out any numerical or typographical errors, this allows you to quickly file disputes to correct any inaccuracies. Aside from alerting you of any fraudulent activity or inconsistencies, a credit monitoring service can also help you effectively manage your credit.

Credit Monitoring Companies Cons

1. According to credit experts, it’s impossible for each company to effectively watch each of their client’s credit report on an hourly basis. While some credit monitoring agencies brag about their daily monitoring, the truth is that it’s not as real-time as advertised.

Many creditors often are late, or incur delays, when reporting new facts to the credit bureaus so the client will not be notified once the activity takes place.

2. The problem with some credit monitoring companies is that they charge fees which are unethically exorbitant. There also have been a few occasions where people cannot easily opt out of their credit monitoring service, even if they wanted to.

While an unsatisfied credit monitoring agency client may wish to stop receiving, or reading credit reports, he or she will still be charged the monthly rate.

Credit report monitoring agencies also cannot fully detect any fraudulent activity. There are a number of details in your account which credit reporting bureaus are often not alerted, or notified about. This is the reason some companies offer identity-monitoring services and offer you a fair amount of credit report monitoring for free.

Would a credit monitoring service be worth the $100 or $150 annual fee? Learn more about credit monitoring companies before contacting and working with one of them.

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Are Credit Monitoring Companies Worth It? was last modified: June 3rd, 2014 by Paul Sarwana

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